US Postal Service Hits Borrowing Limit

Can the Post Office Survive and Continue Shipping?

In 1775, the Second Continental Congress appointed Benjamin Franklin the first Postmaster General of the United States. Today, to accomplish their daily shipping tasks, the US Post Office operates the largest vehicle fleet in the world and uses it to meet their legal obligation to deliver mail to all Americans. To accomplish this huge shipping task, the USPS employs over 574,000 mailmen and women, managers, drivers and more. They also contract with other shippers like FedEx and UPS to assist with overnight flights and other time sensitive deliveries. FedEx is actually the largest USPS customer, and one of their largest shipping competitors.
Today we heard that the U.S. Postal Service hit its $15 billion borrowing limit from the U.S. Treasury. This is the first time in its history this limit has been reached. Unless Congress acts, the Post Office will only have its business revenue to use to pay its bills. Stamps, shipping, junk mail and PO boxes will need to pay their ever burgeoning pension liabilities, payroll and operational expenses. For the moment it looks as if Post Office officials have temporarily stopped selling their real estate in an effort to raise cash.
In the past three months alone, the US Postal Service has borrowed $2.4 billion. Everyone knew their excessive borrowing couldn’t continue forever, but now we will get to see if they can adapt and survive.
Pack and Post has been an Approved USPS Shipper for many years and will continue to offer a wide variety of Post Office shipping products. In addition, we will continue to offer competing services from UPS, FedEx, DHL and other carriers so that customers always get the best service for the best price. Customers will never be left with limited shipping options regardless of the Post Office’s future.